VAT TAXPAYER REGISTRATION

A VAT (value added tax) payer is a natural or legal person who registers with the VAT authorities as a VAT payer and is obliged to calculate, declare and pay VAT on his/her activities. Registration is required when a certain turnover threshold is reached or when the activity falls within areas where VAT registration is compulsory under the law. All processes are regulated
the Law on Value Added Tax
.

When do I need to register for VAT?

• Turnover in the last 12 months of more than EUR 45 000;
• When a company buys goods from other EU countries for more than €14,000 a year;
• When the supply of goods or services is to or from abroad;
• If you voluntarily decide to register for VAT because of requirements from business partners or customers;
• For activities subject to reverse charge.

VAT registration is usually an issue at the start of a business. When setting up a new company, for example when considering
setting up a limited liability company
or
setting up an MB
, it is worth considering at the outset whether you will need to register for VAT. This helps to avoid additional procedures in the future and ensures a smoother start.

Why register voluntarily?

• VAT can be deducted on costs incurred;
• Increased business credibility with partners and customers;
• VAT status is required when working with large customers or international partners;
• Opportunities to cooperate with other VAT payers, especially internationally.

VAT registration is particularly relevant for businesses that trade internationally. If you are involved in import or export activities, it is essential to assess whether you are required to register for VAT on cross-border transactions. In this case, it is advisable to also look into
import-export business
as specific VAT rules apply here. For example, if your company trades in the EU under the B2C regime, you need to register not only in Lithuania, but also in the OSS (One Stop Shop). This is a relevant topic for e-commerce.

Want to save time and avoid mistakes? Entrust your VAT registration to Baulera.lt specialists.

How does VAT registration work?

1. Fill in an application form via the “My VMI” system (
   Form FR0388
   );
2. Supporting documents (if applicable): description of activities, copies of contracts, invoices, etc;
3. The STI issues a decision within 3 working days.

The registration process may take longer if data is missing or clarifications are needed.

Common mistakes

• Not all relevant documentation (e.g. proof of turnover) has been provided;
• Incorrect choice of reason for registration;
• Incorrect calculation of the turnaround period;
• The nature of the activity or the legal form of the activity is not respected.

VAT registration for foreigners

Registration is also compulsory for foreign companies or natural persons operating in Lithuania. In such cases, a fiscal agent may be required (
a company registered in Lithuania which takes responsibility for the fulfilment of its obligations
) or an authorised representative to handle VAT obligations in Lithuania.

In such cases
Baulera
not only explains the entire procedure, but also helps prepare the necessary documents and coordinates the registration process from start to finish
.

What are the benefits of VAT registration with Baulera?

• We carry out an initial analysis of whether VAT registration is really necessary;
• We help you collect and prepare documents;
• Fill in the FR0388 form and submit it via the VMI system;
• We answer questions from the VAT authorities and make corrections if additional information is needed;
• Advice on further organisation and declaration of accounts.

Becoming a VAT taxable person also increases the accounting requirements, such as filing VAT returns, maintaining invoices and ensuring correct reporting. The VAT return is usually submitted monthly by the 25th of the following month.
bookkeeping
as even small errors can lead to inspections by the VAT authorities or financial penalties.

Additional services

• Filing VAT returns;
• Administration of VAT refund processes;
• Consultations on international transactions and EU trade;
• Valuation of VAT obligations in the event of changes in activities or legal conditions;
• We also provide other assistance, such as help with obtaining licences for specific activities.

Contact



Baulera.lt today – we’ll make sure your VAT registration is accurate, fast and hassle-free.